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PROCEEDINGS OF THE CITY COUNCIL
OF THE CITY OF GRAND FORKS, NORTH DAKOTA
Monday, September 25, 1995

The city council of the city of Grand Forks, North Dakota met in special session in the council chambers in City Hall on Monday, September 25, 1995 at the hour of 6:30 o'clock p.m. with Mayor Polovitz presiding, pursuant to call by Mayor Polovitz, which was served on all members on September 20, 1995: Document No. 6626 - Notice.

Present at roll call were Council Members Beach, Hoeppner, Hamerlik, Hanson, Glassheim, Carpenter, Sande, Klave, Beyer, Babinchak, Geller, Hagness - 12; absent: Council Members McCabe, Johnson - 2.

ADOPT RESOLUTION TO AMEND HOME RULE CHARTER
TO IMPOSE AN ADDITIONAL GROSS RETAIL SALES TAX TO FUND A MULTI-USE FACILITY AND TO SUBMIT THE PROPOSED AMENDMENT TO A VOTE OF THE ELECTORATE

The proposal to amend the Home Rule Charter to impose an additional one percent gross retail sales tax to fund a multi-use facility and to submit the proposed amendment to a vote of the electorate was presented to the council for their consideration.

Howard Swanson, city attorney, reviewed the proposed resolution which sets forth recommendation from the civic center process committee which calls for an additional three-quarters percent general sales tax and one-quarter percent tax on food, beverages and lodging, and also calls for a special election to be held on November 28, 1995; the notice of proposal to amend the Home Rule Charter and which notice would be published in the Grand Forks Herald should the resolution be passed; portions of the Home Rule Charter which would be amended; and the proposed ballot language should the resolution be adopted. He stated that item to be considered this evening was adoption of the formal resolution.

Mayor Polovitz called for the public hearing.

Terry Bjerke, 5356 5th Avenue North, appeared and expressed concern that the public doesn't have enough specifics, need to know location of the building, size and type of the building, cost (including infrastructure) and what events will be held there. He also noted that there was $250,000 for operating deficit which also includes marketing and promotions and would like to know if that's a realistic figure. He also stated that most government projects go over estimated cost, and thinks City possibly trying to get vote in with decisions to be made later, that he would like to see specific vote so know what getting. He stated that he is not necessarily opposed to a civic center but to a blank check vote.

Council Member Carpenter reported that the civic center process committee has recommended vote only on the financing mechanism but has generally agreed that before the election that the city council will go on record with a location, with approximate size and cost, and with uses in the facility.

Mr. Bjerke also asked whether specifics (to be announced) would be binding on the council and not changed later. Council Member Carpenter stated it would be highly unlikely that council would change specifics once decided. Mayor Polovitz also stated that civic center process committee would present resolution as to location, use, etc. to the council by resolution, which resolution would have to be passed by the council and that council would abide by that.

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Schurkey Swanke, 1506 South 15th Street, stated that sales taxes inherently regressive, hardest on people who make the least money, unfriendly to tourists, and asked at what point does sales tax become so high that tourists bypass Grand Forks, unfriendly to business, and that interest costs should be included in cost of the facility and public made aware of that as that is what public is being committed to. He also stated that if demand for facility there, why doesn't private enterprise build it.

Bob Gustafson, Chamber of Commerce, stated that copies of a resolution and memorandum from the president of the Chamber had been forwarded to the council, and congratulated the process committee on their work; that he looks forward to moving forward in the next thirty days to answer questions raised, working with council to define solutions to the scope of the project (location, cost, etc.) and hopefully to work toward a successful November 28 vote. He thanked council for their leadership provided on this project, that they have opportunity to help make Grand Forks grow, and that the business community is behind this project.

Mayor Polovitz closed the public hearing.

Council Member Hamerlik introduced the following resolution which was presented and read: Document No. 6627 - Resolution.

It was moved by Council Member Sande and seconded by Council Member Hanson to adopt the resolution to amend the Home Rule Charter. Upon roll call the following voted "aye": Council Members Beach, Hoeppner, Hamerlik, Hanson, Glassheim, Carpenter, Sande, Klave, Beyer, Babinchak, Geller, Hagness - 12; voting "nay": none. Mayor Polovitz declared the motion carried and the resolution adopted.

APPROVE AMENDMENT TO LEASE WITH DAKOTA
QUEEN, INC.

Committee No. 1, Finance, reported having considered the matter of riverboat lease re. location for securing boat during winter months, and recommended that the City sign an agreement with Paul Lester (Dakota Queen, Inc.) allowing storage of the Dakota Queen up the bank from its normal point of departure (western boundary to be the McPherson lot) for one year and allowing railroad tracks from water's edge to this site, contingent upon the following: 1) approval of plans and specifications by the engineering department, with timely consideration: 2) signing of a hold harmless agreement with the City; 3) agreement by Paul Lester that this approval is for one year only and request must be made annually to the River Forks Commission and the city council for renewal; 4) agreement by Paul Lester that he will move the tracks and any fencing upon six months notice to vacate, at no cost to the City or River Forks and that he will restore the terrain to its original condition at his cost; and 5) that the section of track going over the bikepath will be temporary and will be laid down only during the moving of the boat from water to land or land to water.

It was moved by Council Member Geller and seconded by Council Member Babinchak that this recommendation be and is hereby approved. Carried 12 votes affirmative.

ADJOURN

It was moved by Council Member Beach and seconded by Council Member Hoeppner that we do now adjourn until Monday, October 2, 1995 at 7:30 p.m. Carried 12 votes affirmative.


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Respectfully submitted,



John M. Schmisek
City Auditor


Approved:

Michael Polovitz, Mayor